Petrol prices in Nigeria could fall to around N900 per litre in the coming days if the proposed peace agreement between the United States and Iran succeeds and global crude oil prices continue to decline, according to industry stakeholders.
Recent developments in the Middle East have pushed oil prices downward, raising expectations that fuel costs may ease. Crude oil, which traded above $120 per barrel during the peak of tensions, has reportedly dropped to about $87 per barrel.
Fuel marketers believe that a reopening of the Strait of Hormuz could further stabilise global oil supply and create room for lower prices of petrol, diesel, and aviation fuel.
Industry sources also suggest that the Dangote Petroleum Refinery may consider reducing petrol prices if lower crude costs persist. Although the refinery recently adjusted its gantry price downward, officials say existing crude stock purchased at higher rates may delay immediate reductions.
A source familiar with refinery operations said petrol could eventually sell for as low as N900 per litre if crude prices continue to soften.
Similarly, the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) has projected that petrol prices may fall below N1,000 per litre if current market conditions remain favourable and the Strait of Hormuz reopens.
Meanwhile, some fuel marketers have reportedly begun lowering ex-depot prices below the current benchmark, sparking expectations of increased competition and possible price reductions at filling stations nationwide.
